Home buying is easily one of the biggest financial investments for a majority of Canadians. Whether you are a first-time homebuyer or have bought properties before, investing your hard-earned money in buying a new home is always a bit daunting and it's only natural to feel overwhelmed. However, it's your responsibility to do thorough research about all the aspects of the homebuying process before you sign on the dotted line. In the following paragraphs, we will take a look at 7 steps of the homebuying process that will not only educate you, but also make the whole process seem less tedious.
• Analyze your needs
When it comes to buying a home, there are a number of options that you can choose from, including single-family homes, townhouses, luxury condominiums, and multi-family buildings. To ensure you choose the right option, it's necessary that you analyze your needs. Do you have kids or are you planning to start a family n the future? Is the neighbourhood to your liking? Will you be able to live comfortably in a condo? You need to have clear answers to these questions before you begin scouting for your new home.
• Determine how much you can afford
Experts always advise homebuyers to know how much mortgage they can afford before looking around for properties. You need to do a thorough analysis of your income, debts, and future liabilities to know how much mortgage you can pay off without missing on a single payment. It's very tempting to settle for the best home in the market, but you need to think pragmatically and choose a home that's within your budget.
• Get pre-approved for a mortgage
When it comes to buying a new home, the price ranges can be quite extreme. Therefore, it's advisable to get yourself pre-approved for a mortgage before you start scouting for your dream home. To get pre-approved, you will need to provide certain documents to a lender. Based on your credit score and disposable income, the lender will pre-approve you for a certain amount. The benefit of getting pre-approved for a mortgage is that it narrows down the range of homes that you should be looking at.
• Seek the assistance of a reliable real estate agent
With the help of a real estate agent, you can get access to deals that aren't easily accessible to the public. A good real estate agent will help provide you useful information about the property and even help you with the whole purchase process. Experienced real estate agents have a good working relationship with sellers and they can negotiate a deal for you.
• Settle on a deal
After your real estate agent has shown you some really good properties, it's time you arrive at a decision. Again, it's important that you thoroughly research all the aspects, including the reputation of the contractor, vicinity to schools and shopping centers, neighbourhood character, and public transport. Work with your real estate agent and negotiate a fair offer that's comparable with the prevailing rates with similar properties in the neighbourhood. After you and the seller have reached an agreement, the home will go into escrow.
• Obtain a home inspection
After the home has gone into escrow, an inspection of the home will be carried out to check for any structural damages or repairs that the seller may need to make before you close the deal. If the inspection reveals the need for any repairs, the seller is obligated to do the needful. You can then have a walk-through the house to ensure everything has been taken care of.
• Close the sale
If the home inspection is satisfactory or if the seller has made the required repairs, you should be ready to close the sale. You will need to need to go through a lot of paperwork in this stage. Your lender will also get the home appraised and get the title search done. After these important procedures are completed, you reach the stage where you are ready to move into the home of your dreams!
These were a few steps that are involved in buying a new home. We have provided you with a primer on what you can expect when buying a new home; the actual process can be a lot more elaborate than this. Being well-informed about the whole homebuying process can help you make a better decision and ensure you avoid the pitfalls that many homebuyers encounter during the process.
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| Analyze need |
• Analyze your needs
When it comes to buying a home, there are a number of options that you can choose from, including single-family homes, townhouses, luxury condominiums, and multi-family buildings. To ensure you choose the right option, it's necessary that you analyze your needs. Do you have kids or are you planning to start a family n the future? Is the neighbourhood to your liking? Will you be able to live comfortably in a condo? You need to have clear answers to these questions before you begin scouting for your new home.
• Determine how much you can afford
Experts always advise homebuyers to know how much mortgage they can afford before looking around for properties. You need to do a thorough analysis of your income, debts, and future liabilities to know how much mortgage you can pay off without missing on a single payment. It's very tempting to settle for the best home in the market, but you need to think pragmatically and choose a home that's within your budget.
 |
| Budget for buying new home |
• Get pre-approved for a mortgage
When it comes to buying a new home, the price ranges can be quite extreme. Therefore, it's advisable to get yourself pre-approved for a mortgage before you start scouting for your dream home. To get pre-approved, you will need to provide certain documents to a lender. Based on your credit score and disposable income, the lender will pre-approve you for a certain amount. The benefit of getting pre-approved for a mortgage is that it narrows down the range of homes that you should be looking at.
• Seek the assistance of a reliable real estate agent
With the help of a real estate agent, you can get access to deals that aren't easily accessible to the public. A good real estate agent will help provide you useful information about the property and even help you with the whole purchase process. Experienced real estate agents have a good working relationship with sellers and they can negotiate a deal for you.
 |
| Settle a deal |
• Settle on a deal
After your real estate agent has shown you some really good properties, it's time you arrive at a decision. Again, it's important that you thoroughly research all the aspects, including the reputation of the contractor, vicinity to schools and shopping centers, neighbourhood character, and public transport. Work with your real estate agent and negotiate a fair offer that's comparable with the prevailing rates with similar properties in the neighbourhood. After you and the seller have reached an agreement, the home will go into escrow.
• Obtain a home inspection
After the home has gone into escrow, an inspection of the home will be carried out to check for any structural damages or repairs that the seller may need to make before you close the deal. If the inspection reveals the need for any repairs, the seller is obligated to do the needful. You can then have a walk-through the house to ensure everything has been taken care of.
 |
| Closing the sale |
• Close the sale
If the home inspection is satisfactory or if the seller has made the required repairs, you should be ready to close the sale. You will need to need to go through a lot of paperwork in this stage. Your lender will also get the home appraised and get the title search done. After these important procedures are completed, you reach the stage where you are ready to move into the home of your dreams!
These were a few steps that are involved in buying a new home. We have provided you with a primer on what you can expect when buying a new home; the actual process can be a lot more elaborate than this. Being well-informed about the whole homebuying process can help you make a better decision and ensure you avoid the pitfalls that many homebuyers encounter during the process.
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